Threshold Exemption Limit

My clients had issued biils for the service provided in the year 2006-07 as under :

basic amount Service Tax rate Service Tax Bill Amoun

400000 NIL NIL 400000 Payment realised in 2006-07

200000 10.2% 20400 220400 Payment realised in 2007-08

100000 12.24% 12240 112240 Payment realised in 2007-08

Bill in the year 2007-08

400000 Nil Nil 400000 Payment realised in 2007-08

What shud be the amount of threshold exemption in the year 2007-08. will it be the entire amount of Rs. 8.00 Lakh realised in the year 2007-08 or Rs. 400000 Billed and realised in the year 2007-08. If it is Rs. 8.00 Lakh , then what will be the treatment of the amount of Service Tax realised from the customers?

En

The Scheme of Threshold Exemption Limit applies to service providers whose aggregate value of Taxable services provided during the preceding financial year was less than the specified thresholf limit.

There is no doubt that if one were to claim exemption of Rs. 10 Lakh for the year 2008-09 then the total services provided (irrespective of the amount realised ) for the year 2007-08 should not have exceeded Rs. 10 Lakh. I guess you have not understood my question properly. During the year 2007-08 for the first time the Service provider has provided services in respect of Renting of immovable and the total amount billed during the year was Rs. 968540 lakh ( Rs. 8.00 lakh without adding Service Tax being covered under the threshold exemption limit and the reamaing amount of Rs. 1.50 lakh by adding service Tax of Rs. 18540

Out of this only Rs. 6.oo lakh received during the year 2007-08 and claimed exempted during that year (although bills raised towards exempted services were Rs. 8.00 Lakh without knowing that the paymenr would not be received in 2007-08 ) and the remaining amount of Rs. 368540 have been received in the year 2008-09 in addition to the amount of Rs. 5.00 lakh billed and received in 2008-09 (without charging Service Tax) Thus the total receipts in 2008-09 would be Rs. 868540 including service Tax , which is below the threshold exemption limit